The Capital Account Measures

question 157

Multiple Choice

The capital account measures:

• A) net income on capital held abroad and net transfer payment.
• B) changes in foreign ownership of domestic assets.
• C) the economic transactions between residents of one country and residents of the rest of the world.
• D) how the value of a country's exports exceeds the value of its imports.

---

Definitions:

Inventory

All products and materials that a company holds, aimed at either resale or being incorporated into manufacturing processes.

FOB Shipping Point

A term of sale indicating that the buyer assumes responsibility for shipping costs and risk of loss once the seller has delivered the goods to the shipping carrier.

Sales Discount

A reduction in the price of a product or service offered to customers, typically to prompt early payment or bulk purchases.

Cash Returns

Financial returns or profits that are received in the form of cash, as opposed to stock dividends or other non-liquid forms of return.